The U.S. Consumer Product Safety Commission (CPSC) decided unanimously to hold Amazon responsible for defective or unsafe products sold by third parties on its platform. The CPSC ruled that Amazon’s “Fulfilled by Amazon” program (where products are listed by Amazon but sold by third party sellers) qualifies the company as a distributor subject to regulation under the Consumer Product Safety Act (CPSA). Under the CPSA, Amazon could potentially be held liable for hazardous products sold on its e-commerce platform in addition to bearing legal responsibility for product recalls.  

The CPSC rejected Amazon’s defense that it merely serves as third party logistics provider. Although the specific case involved children’s sleepwear and not mattresses, this decision (which Amazon will appeal) could affect consumer product commerce in general, especially given Amazon’s important role in distributing imported products, and many CPSC recalls involve imports. If upheld, ISPA believes this decision should make the product recall process more effective in eliminating dangerous products from online platforms and incentivizing e-commerce providers to exercise more due diligence in their offerings.